US economy contracts 0.7% in the first quarter of 2015

The US economy contracted 0.7% in the first quarter of 2015 compared to the same period in 2014.

The earlier estimate of 0.2% growth has been significantly revised down by the Bureau of Economic Analysis as it had underestimated the increase in volumes of imported goods and overestimated capital investment by firms.

The consumer spending growth in the first quarter was slightly below initial estimates.

The US economy had contracted in the first three months of 2014 as well, shrinking by 2.1%.